Disputes Hit China-Japan Tourism

2/8/2013 4:29AM

Chinese demand for tour packages to Japan during the Lunar New Year holiday has fallen by about half compared with last year. The WSJ's Jeffrey Ng explains why Chinese tourists are avoiding what was once the season's most popular international destination.

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... from China to Japan which used to be the most popular travel destination ... have plummeted by fifty percent welcome to Asia today on my because Sanchanta ... joining me to discuss this is Jeffrey and transportation editor for the Journal here in Hong Kong ... Geoffrey Japan has to be the spot where the Chinese to celebrate lunar New year which is basically the equivalent of Thanksgiving and Christmas together ... now it there but a lot of tension between these two countries but what is the bigger picture here ... well Japan U S has ... been close enough to China and you've been a very ... fashionable location for blow towards ... upwards with Chinese last couple of years since the the the when the new one started ... being re float above the government's been cheaper for Chinese travelers to call pride ... that Japan had been ... number one ... for international trouble ... but during Chinese shareholder is um a lot of people don't want go home usually two to their families ... know this huge migration of ... of migrant workers going back home but we've seen in the recent years many more people going abroad to in the week long haul great ... to see the world in Japan as Number one ... Mr. however that doesn't mention this huge territorial spat people are avoiding ... Japan alliance each have made sure China's online travel agency tells us ... that ... core packages to Japan because this is down more than fifty percent this year ... here to knock on effect on these Japanese retailers to Kelly on the tide is coming every minute of the new year to help ... shore up their revenues ... the bigger picture however it is really interesting story is that ... international travel prices over this ... week long ... Chinese New year holiday ... are down by more than a third line is that Chinese airlines over the last year were to have actually really tried to reduce capacity ... in the shape of the secret it clearly because the PC the more demand coming from that part of ... their business than it actually more lucrative however know we've seen ... airlines awaits us in a ten percent eleven percent of the blast here ... but the now I think ... that a lot of ... probably just tell us there ... is ... open to pass the going on in light of prices ... Airlines are just right is that to slash prices need to attract ... tourists to trouble Shanghai than your from someone airline is selling for ... a one-way ticket for twenty years hundred one months ... at six three of twenty dollars US it's been a very cheap ... so what wisdom tells us ... not to travel over Chinese New year because your tickets at inflated by three or four times that ... I would actually saying is that ticket prices are ... lower than they've ever been all but set a lot of ... people who are traveling abroad ... more than before but their choosing short haul destinations dreams of flying in in an average eight hour flight to fly to three before our flight ... to Singapore to Vietnam to South Korea can all be seated average fares for what would we be lower than one long flight so the view that this could be a bit misleading there are still is a very strong rise in growth in international ... problem on the Chinese during this important holiday period ... but ... that the overall trend is that it's more short haul compared with long haul this year anyway write one week all day so ... um with Japan as we mentioned this to be number one for ... Chinese travelers during the familiar and this you're ... probably just telling us that ... countries like Thailand and South Korea ... have taken over the top spot ... no one to Hong Kong Macau are still ... also very important destination possible for ... consumers from country to come to Hong Kong to shop ... and a traveling over the case they are not hard ... to keep why isn't this trouble when when that didn't serve the cheaper with a great ... thing so much for joining us Jeffrey and transportation editor with a Wall Street Journal and Hong Kong